Wednesday, February 26, 2014

One More Time: Bitcoin Is Not a Libertarian Money

Despite many posts on the topic, I am still getting many emails similar to this tweet:

@WenzelEconomics I'm shocked to see a libertarian speak out against a free market currency. You are a libertarian, correct?
— Dwayne Chenier (@DwayneChenier) February 26, 2014

First, Bitcoin is not a money. It is an awkward transfer system, a changing in-price American Express electronic travelers check-type instrument. No retailer is pricing goods in terms of Bitcoin. Prices are set in dollars and then a Bitcoin price is determined based on the then price of Bitcoin, BUT no one is setting prices or wages in a fixed amount of bitcoins, such pricing on a broad scale would indicate it is becoming a money, but that is not happening anywhere.

Second, just because something appears on the free market does not mean it can't be criticized or that it must necessarily be a solid product, afterall Paul Krugman books appear on the free market. Nuff said.

It is really difficult to see how any currentinternet currencies are superior to gold and silver in terms of privacy and untrackability---and Bitcoin is far from such, Indeed, as Gary North astutely points out, top Bitcoin operators are now running to the government to be regulated (SEE Bitcoins, Stage 2: "Bring in the Feds!")